Telecom Companies Loses 64.3m Subscriptions Due to NIN-SIM Verification

...with Glo and 9mobile Taking a Big Hit

Telecommunications companies have experienced a loss of 64.3 million subscriptions due to the NIN-SIM verification process, with Glo and 9mobile significantly reducing their customer base.

The recent verification exercise of National Identification Numbers (NINs) linked to mobile SIM cards has led to a significant reduction in the subscriber databases of all mobile network operators in the country. MTN, Airtel, Globacom, and 9mobile collectively removed 64.3 million lines from their networks.

As per the latest figures released on Monday by the Nigerian Communications Commission (NCC), this substantial decline was primarily influenced by two operators, Globacom and 9mobile, which experienced significant losses due to unverified NINs during the verification period that concluded on September 14.

Globacom, which reported 62.1 million active subscriptions in March, saw its numbers plummet to 19.1 million by the end of September, resulting in a staggering loss of 43 million subscriptions.

In a similar vein, 9mobile, which has faced customer attrition in recent years, ended September with just 3.6 million active subscriptions. The operator's subscription database, which stood at 11.6 million in March, indicates a loss of approximately eight million subscriptions due to the NIN verification process.

Consequently, the total number of active subscriptions among the four GSM operators decreased to 154.6 million by the end of September, down from 219 million recorded in March.

MTN retains its market leadership

Despite the database cleansing and reduction efforts among telecom operators, MTN Nigeria continues to hold its leading position in the market, reporting 78 million active subscriptions as of September. The company experienced a loss of 3.7 million subscriptions during this exercise, having recorded 81.7 million active subscriptions in March.

Airtel Nigeria, in second place, concluded September with 53.7 million active subscriptions, having lost approximately 9.6 million subscriptions over the past six months, down from 63.3 million in March.

While MTN and Airtel are less affected compared to Globacom and 9mobile, their Q3 2024 revenue is likely to be influenced by recent developments, with results expected to be announced soon.

Prior to the final assessment, the operators had indicated potential effects on their financial performance.

Airtel Africa, the parent company of Airtel Nigeria, revealed in its financial report for the quarter ending June 30, 2024, that it might experience a monthly revenue loss of up to $4 million due to the verification of customers' National Identification Numbers (NIN) in Nigeria. At that point, Airtel noted that approximately 4.9 million customers had yet to have their NIN verified.

Similarly, MTN Nigeria reported that as of February 28, 2024, it had disconnected 4.2 million lines that were not linked to NIN. However, the company stated that this disconnection had a minimal effect on its revenue, as the customers affected were categorized as 'low-value subscribers.'

The mandatory requirement to link National Identification Numbers (NIN) with SIM cards commenced in December 2020, following a government directive to telecommunications companies to restrict access to unregistered SIM cards and those not associated with a NIN.

Multiple deadlines were established, culminating in August of this year when the Nigerian Communications Commission (NCC) set a final deadline of September 14 for both the linking and verification of all NINs associated with SIM cards. Prior to this, many telecom users experienced disruptions in their ability to make or receive calls on July 28 and 29, as telecom operators suspended millions of lines in anticipation of the July 31 deadline set by the regulator. 

This situation resulted in significant unrest, with numerous subscribers crowding telecom stores and some resorting to violence. The timing of these events coincided with a planned nationwide protest scheduled for August 1 to 10. In response, the NCC reversed its stance, instructing all telecommunications companies to restore service to the barred lines. However, the regulator clarified that this suspension of restrictions was temporary, intended to facilitate the proper linking of NINs to SIM cards.